Paying off the mortgage on your home or other real estate is a huge milestone. Having a deed of reconveyance that proves you’ve paid off your debt is exhilarating. You can use our deed of reconveyance sample to create this legal document for yourself.
A deed of reconveyance is a legal document stating that you have paid the debt owed on the property in full. When you purchase a home or other real estate by financing a portion of the purchase price, the deed of conveyance for that property is held as collateral for the repayment of the loan. Once you have paid the loan’s entire outstanding balance, a deed of property reconveyance confirms that fact.
A deed of reconveyance may also be known by the following names:
A deed of reconveyance is important because it shows you fully own the property. If you want to sell the property or later use it again as collateral for a loan, you need proof, sometimes referred to as a letter of reconveyance, to show you paid in full the original debt on the property.
When you purchase your property, and use it as collateral for the loan repayment, the lender will file a deed of trust in the county recorder’s office to indicate the lender has a lien on that property until the loan is repaid in full. Even if you have paid off the loan, if there is nothing filed in the record showing you repaid the loan, it will still appear that the lender’s deed of trust is still valid. If there is no deed of reconveyance on file at the county recorder’s office, you will likely have a problem selling your property later. So, it is vital that you have and file the deed of reconveyance in the appropriate county property records.
A deed of reconveyance should include the following information:
You should file a deed of reconveyance with the county recorder in the county where the property is located. The county recorder is often in or near the county clerk of court’s office or the county probate court. This is the same office where you would file an act of sale, a mortgage, and other legal documents affecting the ownership or mortgage of real estate. Once you have recorded the original deed of reconveyance with the county recorder’s office, you may obtain a true certified copy of the document to show your complete and unencumbered ownership of the property.
You can find our simple deed of reconveyance form at Lawrina.com to customize for your use. You can download the template as a Word document or as a PDF and use the legal document to show your legal rights and property ownership. We also have an easy-to-use deed of conveyance form that you can download to use for transferring property from one party to another. When an original owner or seller transfers property to a new owner, they should use a deed of conveyance form.
Writing your deed of reconveyance can be simple if you download our template. It is important to include all the required information on your document and be sure to have the lender’s signature notarized. When you are about to make the last payment on your property, you should start the process needed to secure your deed of reconveyance and prove you are the property’s legal owner.
First, coordinate with the lender to let them know when you will make your final payment and to ensure you know the payoff’s exact amount. Set a time to deliver your deed of conveyance document to the lender for their review unless the lender provides the deed of reconveyance document. If the lender provides the form, review it carefully.
You will want to negotiate the terms of the deed of reconveyance contract with all parties involved. Be sure that you understand the payoff amount and who will pay the registration fee to file the deed of reconveyance with the county recorder.
Go to Lawrina.com and download our deed of reconveyance sample document. Then, customize the template for your use.
Be sure to include all the necessary information, including the legal property description, the legal names of all parties involved or their legal representative, the statement that the debt has been paid in full, and a place for the lender and notary to sign.
When you use this Deed of Reconveyance Form pdf, you assume all responsibility and liability. Lawrina retains no legal responsibility for the legal document’s accuracy, reliability, or functionality.
The unprofessional use of this legal form or other templates on this website could result in direct or indirect losses or damages. By downloading, printing, or using this agreement, you accept all liability for any loss or damage you may suffer.
Frequently Asked Questions
No, real estate agents usually do not provide the deed of reconveyance form. The real estate agent focuses more on selling the property and not as much on the mortgage and debt repayment part of the real estate transaction. You can use our simple deed of reconveyance form at Lawrina.com to create your reconveyance document. If you have questions or would like legal advice, you should consult one of our experienced real estate attorneys at Lawrina.com. Why do I need to record the deed of reconveyance once I’ve paid off my debt? You need to record the deed of reconveyance with the county recorder or local sub-registrar’s office as evidence that you paid off the property’s mortgage. When you take out a loan with your property as security, the lender will record the deed of trust or evidence of mortgage against your property with the local recorder’s office to ensure their right to foreclose on your property if you do not pay according to the loan’s terms. That deed of trust or evidence of mortgage will remain in the county records indefinitely. So, if you do not have a deed of reconveyance filed to show you fully repaid the loan, it will appear that you do not have a clear title to your property. If you want to sell your property or use it as collateral in the future, your lender will want to see that you have a clear title.
A sale deed may also be called an act of sale. It is a legal document that describes the property that is sold and the names of the property’s present seller and buyer.
A gift deed is a legal document used when an owner wants to gift the property to another person. It transfers the property title without a sale.
A lease deed transfers property for a limited period of time in exchange for money or other consideration. Lease deeds should describe the rights and responsibilities of both the property’s lessor and lessee.
The cost of filing a deed of reconveyance varies. You should contact your local recorder’s office to determine the cost of filing your deed of reconveyance.